A Portfolio's Risk Is Measured by the Weighted Average of the Standard

question 133

True/False

A portfolio's risk is measured by the weighted average of the standard deviations of the securities in the portfolio.It is this aspect of portfolios that allows investors to combine stocks and thus reduce the riskiness of their portfolios.

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Definitions:

Suppressing Activity

Activities or actions taken to stop or reduce a process or function, often used in a biological or mechanical context.

Vasopressor

A type of medication that constricts (narrows) blood vessels, leading to an increase in blood pressure.

Smooth Muscles

Involuntary muscles found in the walls of internal organs such as the stomach, intestines, and blood vessels, responsible for contractions and movements within those organs.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, a vital sign crucial for assessing cardiovascular health.